Correlation Between HUMANA and Thunder Bridge
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By analyzing existing cross correlation between HUMANA INC and Thunder Bridge Capital, you can compare the effects of market volatilities on HUMANA and Thunder Bridge and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUMANA with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thunder Bridge.
Diversification Opportunities for HUMANA and Thunder Bridge
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Thunder is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital and HUMANA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUMANA INC are associated (or correlated) with Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of HUMANA i.e., HUMANA and Thunder Bridge go up and down completely randomly.
Pair Corralation between HUMANA and Thunder Bridge
Assuming the 90 days trading horizon HUMANA is expected to generate 3.94 times less return on investment than Thunder Bridge. But when comparing it to its historical volatility, HUMANA INC is 1.87 times less risky than Thunder Bridge. It trades about 0.08 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Thunder Bridge Capital on August 29, 2024 and sell it today you would earn a total of 140.00 from holding Thunder Bridge Capital or generate 875.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.67% |
| Values | Daily Returns |
HUMANA INC vs. Thunder Bridge Capital
Performance |
| Timeline |
| HUMANA INC |
| Thunder Bridge Capital |
HUMANA and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thunder Bridge
The main advantage of trading using opposite HUMANA and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thunder Bridge can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
| Thunder Bridge vs. Aurora Innovation | Thunder Bridge vs. HUMANA INC | Thunder Bridge vs. Aquagold International | Thunder Bridge vs. Barloworld Ltd ADR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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